Consumer Bankruptcies Skyrocket; December: 50% Year-to-Year
February 9th, 2009 at 10:39 am - by admin
Month-to-month, consumer bankruptcy filings fell slightly between November and December, but on a year-to-year analysis bankruptcies were up almost 50 per cent in December from the same month in 2007, according to the Office of the Superintendent of Bankruptcies, Monday.
5,192 bankruptcy filings were made in December 2007, according to the Bankruptcy Office, up to 7,821 in December 2008, but down from the 8,163 made in November 2008. This large year-to-year increase was end-weighted, with only a 13.5 per cent increase across the year (to 90,610).
Business bankruptcies over the year declined 2 per cent in 2008, with the end-weighted increase December-to-December being quite small - only 2.4 per cent higher.
Alberta held the highest increase in consumer filings with over double the filings in December 2008 as those seen in 2007; caused by a credit-based economy with quickly diminishing confidence in growth metrics. Business filings were led by Newfoundland, followed closely by Manitoba and Saskatchewan.
February 9, 2009 at 8:11 PM
I guess it is hard to say there is a silver lining to any sort of bankruptcy filing, especially for a business. It is always difficult to see any business ‘go under’. However, over the years, I have seen bankruptcy filings become a very positive thing for many businesses. That is not to say that it does not come without trial and sacrifice. I currently work with several businesses who have come out of bankruptcy. The process of working through the bankruptcy really helped them to focus on what their business was about, and how they might improve it. Hopefully this will be the case for many of those who have few other choices than to file for bankruptcy. The message: There can be a light at the end of the tunnel